A 4000 pound loan is typically a type of instalment loan, and may be a useful tool whether you're facing financial emergency or are looking to take care of a smaller planned expense.
Actual loan amount, APR and term may vary based on actual application details.
Whatever your reason for needing a loan, On Stride Financial may be able to help. We offer funding from £1,000 to £10,000, and our straightforward application process allows you to apply at home or on the go.
If you need to repay your loan over a longer period, On Stride Financial offers loan durations of one, two or three years, depending on your application.
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There are a huge variety of loan types, loan amounts, loan durations and other loan elements to choose from. The more flexible the lender, the more options you have as a borrower.
One loan type that is commonly found with larger loan amounts is the instalment loan, so called because it is repaid in a series of separate payments or "instalments" over the course of months or years.
Alternatively, a short-term loan is generally repaid in one instalment.
A borrowed amount such as a 4000 pound loan is more likely to be an instalment loan because it is a personal loan for a relatively higher figure. Larger loan amounts are often packaged as instalment loans because most people will generally take longer to repay a higher amount, than they would a loan for a smaller amount.
With a series of instalment repayments, you’d have an easier time repaying the full loan amount over a longer period of time because the instalment payments are generally smaller.
For any borrower, it's important to understand the different loans available. For instance, both instalment loans and payday loans fall into the category of personal loans.
With a secured loan, you can borrow money against the value of property or possessions, while an unsecured loan does not require any such collateral.
A guarantor loan allows the borrower to name a third party as the co-signer of the agreed loan.
As for other loan types that fall into the category of instalment loans, there are two very common ones you should be familiar with — mortgages and car loans. Anyone who has purchased a house or a car is likely to have at least considered one of these loans, and due to their larger amounts, typically need to be repaid in instalments.
While you’re permitted to use a personal loan in any way you like, at On Stride Financial we recommend that personal loans be used responsibly in cases such as an emergency, or if the borrower has a reasonably necessary, planned expense.
While it's unlikely in this case that a £4000 loan will cover any substantial home repair, it may be useful for a smaller, planned fix or renovation work. For instance, retiling the floor of the bathroom after it is damaged, replacing the windows of one or two rooms, or even putting a fresh coat of paint on the exterior of your house may all be possible with a 4000 pound loan.
However you choose to use your borrowed funds, remember that taking on a loan is a real financial responsibility and big commitment. Take the time to do your research on various lenders before you make the commitment, and make a budget so that you know exactly how much you can afford to repay.
It all comes down to research. You need to understand exactly what each lender offers, in terms of loan types, amounts, rates and terms. This will allow you to understand more clearly which lender can serve you best, based on your individual needs.
If you’re in doubt about of the potential lender’s services, it should be easy to give them a call to establish what you need to know, and to find out what kind of customer service you will receive, should you opt to borrow from them. Try perusing the lender's site, or sites like Reviews.co.uk to find customer testimonials, as this is often the best way to see what the average customer thinks.
Borrowing an instalment loan can be a useful way to get the funding you may need, but between interest, a repayment schedule, and each lender's unique rates and terms, it can also be daunting.
It's certainly important to understand in general terms how an instalment loan works — you borrow a sum of money and a repayment schedule is agreed upon at the signing. As is typical for any loan, you’ll be charged some percentage of interest on the loan, which will be added to the instalment payments. However, with the number of repayments involved, and due to the fact that some lenders will offer variable repayment schedules, calculating the amount that you will repay is easier said than done.
The reality is that any lender worth considering will be very upfront in providing you a clear breakdown of the repayment schedule in advance of signing any agreements. Additionally, you should get in touch with a customer service representative and ask any questions you may have. A lender who has your best interests at heart will work hard to help you understand the commitment you're making.
While personal loans are typically granted for anywhere from £50 to £10,000, the reality is that there isn't necessarily a set of "common" loan amounts.
There are a large variety of loans and loan types, and an even greater quantity of reasons you might need a personal loan. Thanks to all this variability, the number of different loan amounts requested by borrowers is significant, and makes it hard to pin down any set of loan amounts as more common than the rest.
The information in this article is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this article is not intended to be and does not constitute financial or any other advice. The information in this article is general in nature and is not specific to you the user or anyone else.